USD/CAD consolidates losses around 1.2300 ahead of mid-tier data

USD/CAD closed previous two days in the negative territory.
US Dollar Index fluctuates in a tight range below 92.00.
Focus shift to mid-tier data releases from US and Canada.

Eren Sengezer FXStreet

Following Monday's deep correction, the USD/CAD pair extended its slide on Tuesday amid broad-based USD weakness. In the absence of significant fundamental drivers, the pair seems to have gone into a consolidation phase near 1.2300, where it closed the previous day.

DXY turns quiet below 92.00 ahead of PMI data

While testifying before the House Select Subcommittee on the Coronavirus Crisis on Tuesday, FOMC Chairman Jerome Powell refrained from delivering any surprising remarks on the policy outlook and the greenback struggled to find demand. The US Dollar Index (DXY) finished the second straight day with losses and allowed the bearish momentum on USD/CAD to remain intact.

Ahead of the IHS Markit's preliminary June Manufacturing and Services PMI report, the DXY is clinging to small recovery gains above 91.70. New Home Sales for May will be featured in the US economic docket as well. On the other hand, Statistics Canada will release April Retail Sales data.

Meanwhile, the barrel of West Texas Intermediate (WTI) is up modestly on the day at $73.35, helping the commodity-related loonie stay resilient against its rivals. Later in the session, the US Energy Information Administration's (EIA) weekly Crude Oil Stocks Change data will be looked upon for fresh impetus.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2297
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.2306

Trends
Daily SMA20	1.2164
Daily SMA50	1.2228
Daily SMA100	1.2419
Daily SMA200	1.2704

Levels
Previous Daily High	1.2403
Previous Daily Low	1.2302
Previous Weekly High	1.2481
Previous Weekly Low	1.2128
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2341
Daily Fibonacci 61.8%	1.2365
Daily Pivot Point S1	1.2271
Daily Pivot Point S2	1.2236
Daily Pivot Point S3	1.217
Daily Pivot Point R1	1.2372
Daily Pivot Point R2	1.2438
Daily Pivot Point R3	1.2473

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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